Frisco is the latest city to plan incentives to convert short term rentals to long term rentals

A view of homes near the recpath and Dillon Reservoir in Frisco is pictured on April 22, 2020. The town of Frisco is working to implement a program that aims to incent short-term rental owners to convert their properties into long term rentals.
Liz Copan Archives / Summit Daily News

The city of Frisco is working on a plan to increase the number of housing units for the workforce, and a new pilot program to address the issue is expected to begin this month. Called Frisco Housing Locals, the initiative aims to encourage short-term rental owners to convert their properties to long-term rentals, like a new program in Breckenridge and Summit County.

According to housing manager Eva Henson, a survey was sent out in mid-August to short-term rental owners and active property managers to help them identify barriers to long-term rental. The poll had a 72.5% response rate, and over 86% said the biggest challenge for long-term renters is occupancy, as owners share their time using the property throughout the entire period. year and renting at other times to offset their mortgage and other expenses.

“Let’s try to get people who have never rented or who haven’t rented long term now, who don’t have guest bookings, who don’t have Christmas and winter on the horizon. , and let’s see if we can get a few more long term rentals in place, ”Henson said at a Frisco city council business meeting on Tuesday, Oct. 12.

Before it becomes available to the rest of the community, the program aims to house approximately 24 government employees. The city is looking to hire 15 full-time employees and around 40 seasonal employees.

Four city-owned rental buildings that could house around eight employees are also being held to help recruit for the positions.

Frisco Housing Locals will be partnering with Omni Real Estate to negotiate affordable leases, and some local landlords have already expressed interest on a trial basis. Omni Real Estate has experience managing properties through the Family & Intercultural Resource Center’s Housing Works initiative, which connects Summit County workers in need of housing with willing landlords. converting their vacation rental properties into long term accommodations.

The preliminary program will include a six month head lease with a flat fee per room while covering all third party costs associated with property management, maintenance and property damage insurance. The city will lease a property and then sublet the property to prequalified, full-time or seasonal employees.

Each agreement will be negotiated based on the specifics of the situation, such as the type and condition of the unit, the owner’s expenses and the salary of an employee.

“Good job. I want to get something done,” said board member Melissa Sherburne. “… Let’s not overanalyze and think too hard about this to get nothing. I say let’s go, refine as needed.

The program’s budget is $ 100,000, including management fees, and comes from the city’s housing assistance program. There are currently five interested owners on staff, which could house 12 employees at an estimated cost of $ 47,000. Omni Real Estate’s fees would be 6.5% of the gross rental income generated by each real estate lease.

Henson said the program will be refined over time and reassessed in the spring.

“We’ll probably have some nuances and details to work out, but I think we’re able as a staff at this point with our expertise and knowledge to get us there,” Henson said.


About Michael B. Billingsley

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